Chapter — II

HUMAN RESOURCE MANAGEMENT AND

DEVELOPMENT - AN OVERVIEW

A review of the existing literature on Human Resource Management and

Development is attempted in this chapter. The review is arranged thematically

and divided into following sub-sections.

2.1 Evaluation and Emergence - from 1760 onwards

2.2 Stages of Development - 1895 to present period : Scientific Management

Period, Classical Organisation Period, Human Relations Movement,

Management by Objective, Behavioural Science Movement, Neoclassical

Approach, Organisational Development Movement, The Process System

View and the Corporate Culture Analysis.

2.3 Human Resource Management Approach

2.4 Human Resource Management Programmes - Human Resource

Organisation, Human Resource Planning, Human Resource Systems,

Human Resource Development, Human Resource Relationships and

Human Resource Utilisation.

2.5 Human Resource Development - World and Indian Scenario.

2.6 Human Resource Development Mechanisms

2.7 Human Resource Development in Service Sectors

2.8 Human Resource Development in Rural Areas

2.9 HRD in Panchayatraj Institutions

2.10 HRD in Voluntary Organisations

2.11 Summary - Inferences from the Review of Literature

2.1 Evolution and Emergence

A probe into the roots of Human Resource Management, leads us back to

the period of Industrial Revolution (1760 - 1850), which was characterised by the

invention of machinery, power connected machines and formation of factories

employing workers. The rapid expansion of industries made the management of

finances, products, raw materials, and labourers a subject of discussion, study

and evaluation. This led to the emergence of some systematic attention in the

functioning of factories, which paved the way for the foundation of Human

Resource Management.

The British mathematician, Charls Babbbage, was the first scientist to

demonstrate the application of scientific methods of observation, experiment and

verification in the management process. He recommended “accurate observation,

exact measurement and precise knowledge of the cause and effect relationship

as a substitute for guess work, intuition, and opinion.” (Prasad and Bannerjee

1985 : 7). But the honour of being the first to establish the claim of management

as a science has been unanimously given to Frederick Winslow Taylor, whose

view of scientific management is based on the ‘functional organisation’.

49

2.2 Stages of Development

Scientists in the field of management have conveniently divided the period

of development of human resource management into nine inter-related stages.

These are:

1) Scientific Management Period (1895-1915)

2) Classical Organisation Period (1916-1929)

3) Human Relations Movement (1930-1950)

4) Management by Objective (MOB) Movement (1950-1980)

5) Behavioural Science Movement (1960-1980)

6) Neo- Classical Approach (1960-1970)

7) Organisational Development Movement (1950 to present)

8) The Process System View ■ contemporary view

9) The Corporate Culture Analysis - contemporary view

2.2.1 Scientific Management Movement (1885 to 1915)

Winslow Taylor, one of the early prophets of scientific management

movement was instrumental in bringing the logic of efficiency to management.

His concept of ‘functional organisation’ was the foundation stone for the

development of management process. This concept is based on the arrangement

and division of work in such a way that the worker has to do only the possible

functions. Taylor has conducted a number of live experiments in this area and

50

asserted that management persons should have “ adequate intelligence, an

orderly habit of mind and the ability to see a subject as a whole while keeping

track of the parts. (Taylor 1947).

Along with Taylor, Henry L.Gantt, Frank William Gilberth and others were

also involved in the process of improving the management systems based on the

‘principle of precision’ Grantt developed the methods of planning and managerial

control with emphasis on time and cost. He developed the ‘Grantt Chart’ for

operating the method. This chart was the first technique developed to analyse

how the parts of a programme are related and fit together in due course. Frank

Gilbreth's major contributions were in the field of time and motion study. He

analysed the body movement of workers and said that there were much wasted

movements in the working pattern of labourers. He proved that these movements

could be systematised for achieving greater output, Lillian Gilbreth, the wife of

Frank Gilbreth, an industrial psychologist, is also credited with a pioneering work

relating to the principles of scientific management to psychology. She is widely

acclaimed as the ‘first lady of management’.

Taylor affirmed that ‘productivity’ was the answer to both higher wages

and higher profits. He said that the key to productivity without undue expenditure

of energy is the application of scientific method. In his address to the House of

Representatives Committee in the United States of America, Taylor put forward

the ‘science of shovelling’. He illustrated that shovelling could be broken down

into separate and more comfortable movements, each of which had an optimal

level of mechanical efficiency and greater level of output. Taylor suggested a sort

of ‘mental revolution’ to integrate the interests of management and labour into a

mutually rewarding system. This includes the time and motion study, proper

training, physical and mental matching of the job, planning and decision of work.

(Edwin A Locke 1982: 14-24).“Overall, there is little doubt that application of the

principles of scientific management has resulted in much higher productivity

than would otherwise have been possible. What is remarkable is not that Taylor

was ‘correct in the context of his time’, but that many of his insights are still valid

today. (Casio 1989: 42). Some of the key reasons for the gradual decline of

scientific management are:

1) emergence of labour as critical factor in the firm,

2) increasing complexity of markets and products,

3) political social and cultural changes,

4) organisations became large and more complex. (Wilson & Rosenfeld 1990:8)

2.2.2 Classical Organisation Theory (1916 to 1929)

Classical Organisation Theory was put forwarded by Henry Fayol. His

book ‘Administration Industrielle et Generale’ (The General and Industrial

52

Administration) analysed the issues faced by the top management. This was

against the ‘work focus’ of scientific management. Fayol was the first scientist to

discuss management as a process, and in the process he distinguished six main

branches such as technical, commercial, financial, security, accounting and

administration. The administrative function is only a specialised function, which

occurs in a grater of lesser degree in relation to all other activities. As one goes

higher in the ladder of hierarchy, administrative knowledge and skill become

more important than technical skill. According to Fayol, it is the unwillingness of

the top executive to recognise this fact is often responsible for the failure of a

business.

After analysing all the ingredients and nature of administration, Fayol

listed fourteen principles, which formed the central part of his theory of

administration. These are: authority and responsibility, discipline, unity of

command, unity of direction, subordination of individual interest to general

interest, division of work, remuneration of personnel, centralisation, scalar chain,

order, equity, stability of tenure of personnel, initiative and ‘esprit de corps'.

Having enumerated the principles of administration, Fayol went on to discuss the

five elements of management via planning, organisation, co-ordination,

motivation and control. He observed with great foresight that since all enterprises

require managing, the formulation of a theory of management based on sound

principles is necessary for it to be effectively propagated and taught.

2.2.3 Human Relations Movement (1930-1950)

The theory of Human Relations Movement, propounded by Elton Mayo,

Chester I Bernard, Roethlisberger, Dickson etc., concentrates more on the human

behaviours and relations than the mechanical efficiency. Mayor’s experiments

clearly proved the tremendous influence of emotions on group behaviour.

Bernard in his books ‘The functions of the Executive’ (1938), said that there is a

social or natural group in every work group which can be considered as a

precedence over the functional group. He stressed the need of flow of

information from down to upward also. Bernard continued that for installing the

long-run aims of the organisation, cohesive leadership is necessary. When the

above criteria are fulfilled, the congregation of all the factors will ensure effective

and coherent decision-making. During 1939, Elton Mayo and Fritz Roethlisberger

conducted the How throne studies and constituted the ‘human relations school'.

They find out that in addition to physical environments, social factors such as

morale, satisfactory inter-relationships etc... will also have an impact on

efficiency. Based on all these developments, it is realised that there is an

important need to motivate people. This led to the increasing emphasis on the

54

concepts of leadership, informal organisation and morale in the management

theory and practice.

2.2.4 Management by Objective Movement (1950 - 1960)

Peter F.Drucker and Douglas Me Gregor are the advocates of this system

of thought. Peter F Drucker was the first scientist to coin the term ‘management

by objective’ in1954. He said “each member of the enterprise contributes

something different, but all must contribute towards a common goal. Their efforts

must all pull in the same direction, and their contributions must fit together to

produce a whole without gaps, without friction, without unnecessary duplicating

of effort. In the 1954, in his book ‘Practice of Management’, Drucker said “an

effective management must direct the vision and effort of all managers towards a

common goal”. His concept of goal - directed leadership is fundamental to

human resource management. (Drucker 1954).

Drucker has identified eight key areas of organisational needs. These are

market standing, innovation, productivity, physical and financial resources,

profitability, manager performance and development, worker performance and

attitude and public responsibility. According to Drucker, there are three ways to

determine the kind of structure needed in specific enterprises. They are: a)

activity analysis, b) decision analysis and c) relation analysis. Drucker observed

55

that the managers’ main instrument for operating his affairs is reliable

information. “The greatest advantage of management by objective is perhaps that

it makes it possible for a manager to control his own performance. Self control

means stronger motivation: a desire to do the best rather than do just enough to

get by........... Management by objective and self control asks for self discipline”.

“Management by Objective and self control is more than a slogan, more than a

technique more than a policy even. It is, so to speak constitutional principle”.

(Drucker 1974).

Douglas Me Gregor advocated management by integration and self-

control, partly as a form of management by objective but more importantly as a

strategy for managing people. In his book “The Human Side of Enterprise”,

Douglus Me Gregor has described the traditional concept of management as

theory X and the modern concept as theory Y. According to him, the traditional

managers emphasise on directing and controlling the efforts of others. They

believe that: 1) the average person dislike work and whenever possible will avoid

it, 2) most people are not ambitious and have little desire for responsibility and

prefer to be directed, 3) to get people work, it is necessary to use strict control,

threats, constant says that unless a system of reward and punishment is

introduced, which would create fear in his mind, he will not work. The traditional

approach thus rest upon the basic distrust of human nature.

56

“Management by direction and control may not succeed because it is a

questionable method of motivating people, whose physiological and safety needs

are reasonably satisfied and whose higher level needs are becoming

predominant". (Me Gregor 1960). He therefore developed the theory Y. The

assumptions of this theory are:

1) work is a natural activity like playing and rest, if the conditions are

favourable,

2) close supervision and threats of punishment are not the only ways to

get people to do things,

3) motivation occurs at the social esteem and self-actualisation levels, as

well as at the physiological and security levels and

4) people can be self-directed and be creative at work if properly

motivated.

The new theory of management, according to Me Gregor, looks upon man as a

social being who likes work as much as rest or play. The ‘carrot and stick policy’,

according to this theory, does not work. Instead, the principle of self-direction

and self-control works better. Management in Me Gregors view is thus “a process

primarily of creating opportunities, releasing potential, removing obstacles,

encouraging growth, providing guidance”. Drucker consolidated that

“traditionally, business has been held responsible for quantities for the supply of

food and of jobs, for costs prices, hours of work, and standards of living. Now

57

business increasingly is being asked to take on responsibility for the quality of

life in our society.... It is a demand that the quality of life become the business of

business”. Thus Drucker and Me Gregor paved the way to the Human Resource

Management Philosophy. The human resources policies and Programmes must

be built into the strategic objectives and plans of the business enterprise and

must also aim to get every one involved in the achievement of these objectives

and plans. (Me Gregor 1960 : 4ff)

2.2.5 Behavioural Science Movement (1960 - 1980)

The behavioural science movement came into prominence in the 1960’s. It

was coined by writes such as Maslow, Likert and Herzberg. ‘The hierarchy of

human needs’ of Maslow, the ‘integrating principles of supportive relationship’ of

Likert and the ‘job enrichment’ of Herzberg are the valuable contributions to the

behavioural science movement. The behavioural science approach encompasses

a much broader base of academic and applied disciplines and addresses itself to

a much wider range of problems. Disciplines such as sociology, psychology etc..

have contributed a lot to the knowledge and practical application of human

resource management.

Abraham H.Maslow, in his hierarchy of human needs said that all

behaviours are goal-directed. People behave in a particular way because of their

58

need to achieve certain things. The first need in the order of hierarchy of human

need is the physiological need like food, clothing, air, etc... Until they have

enough of these, all their activities will be directed towards obtaining them. Once

they have their physiological needs satisfied to the required level, a second order

of needs come to the surface and directs their behaviour. These are safety and

security needs. Once they have required level of security needs they move to the

next level of needs for love and belongings. Once the needs for love and

belongings are satisfied they come to the higher order of social needs. These

needs include the needs for achievement, recognition, status, power and

influence over other. These are also called ‘ ego needs’ or ‘esteem needs’. The

last one in the hierarchy is called ‘self-actualising need’. It is the need for

understanding ones own abilities and potentials and using them to the maximum.

Most people are struggling with one or more of the needs below this order, and

very few attain this highest motivational level of self-discovery and the need to

exploit one’s own potential. Maslow acknowledged that his hierarchy was not

rigid and that needs is relative in their strength and is individualistic. A lower

need does not have to be fulfilled completely before a higher need emerges.

(Maslow 1943)

Herzberg developed the motivation hygiene theory, which is based on the

results of numerous studies in many diverse organisational settings and was

59

closely interrelated to Maslow’s ‘hierarchy of needs model’. Frederick Herzberg

(1959) and his associates distinguished between motivational and maintenance

factors in the work situation. Herzberg says that man has two different categories

of needs, which are essentially independent of each other and affect his

behaviour in different ways. Herzberg calls the first category of needs as hygiene

factors because they describe man’s environment and serve the primary purpose

of presenting job dissatisfaction. Maintenance factors or hygiene factors are

those which belong to the company policies and administration, supervision,

inter-personal relations, working conditions, pay, job security, personal life,

status etc... (Herzberg, 1959 : 59-62) propounds that these factors help in

removing discomfort, dissatisfaction and discontent on the part of the employees

but are not motivators as traditionally perceived by management. These potent

dissatisfying factors are called maintenance factors on the job, because they are

necessary to maintain a reasonable level of satisfaction in employees. They are

also known as hygiene factors because they support employee’s mental health.

The second category of needs is called motivators because they seem to be

effective in motivating people for superior performance. Motivators or job content

factors include achievement, recognition, increased responsibility, challenging

work, growth and development. According to Herzberg both the sets of factors

work in one direction only. Absence of hygiene factors may dissatisfy the

60

workers but will not de-motivate them. Similarly, in the presence of motivators

workers will be motivated, but their absence does not make them dissatisfied.

Herzberg’s Motivation Hygiene Theory was analysed by Dumettee,

Camphbell and Hakel (1967) and has accomplished that;

1) It discovered the difference between satisfaction and dissatisfaction in job

situations

2) It emphasises those job features that lead to change in feelings towards the

job and

3) It developed taxonomy of job situations consisting of satisfying and

dissatisfying features.

Many authors have however criticized Herzberg’s theory. Keith Davis observed

that a limited testing of the model on blue-collar workers suggests that

sometimes normally considered as maintenance factors are frequently

considered motivational factors. Some authorities even doubted whether the

factors leading to satisfaction and dissatisfaction are different from each other. It

is sure that in less developed countries it is likely that the workers will designate

some of the maintenance factors or hygiene factors as motivators, since they are

yet to meet some of their lower order needs. Me Clelland’s (1953) theory of

motivation is quite extensive and involved. According to him striving for pleasure

and seeking to avoid displeasure are innate and all others are acquired. He says

61

that people can be classified into two broad groups - one small and the other

large. Those falling in the small group are challenged by opportunities and are

willing to work hard to achieve some goal. People in the large group, on the other

hand, have less need of achievement and are not so challenged by opportunities.

2.2.6 The Neo-classical Approach (1960 -1970)

While classical theories focussed more on structure and physical aspects

of work (not withstanding Taylor’s concern for mental revolution), The neo­

classical theory recognises the primary of psychological and social aspects of

the worker and his relations within and among groups and the organisation. It

considered the importance of caring the feelings of workers and understanding

the dynamics of the informal organisation of workers, which affects the formal

organisation structure, its activities, processes and output. The neo-classical

viewpoint thus gave birth to human relation movement and provided the thrust

towards democratisation of organisational power structures and participatory

management. The neo-classical viewpoint does not replace classical concepts.

The need for order rationality, structure, etc... have been modified to highlight the

importance of relaxing the rigid and impersonal structures and consider each

person as an individual with feelings and social influence that effect performance

on the job. The most significant contributors of this theory were Chris - Argyris

62

and Rensis Likert. They are called neo-classicists because they have suggested

improvements in the classical model.

Chris Argyris (1964, 1971, 1982) said that in bureaucratic organisations,

managers with total responsibility and domination made subordinates to become

passive and dependent, with a decreased sense of responsibility and self-control.

He said that such an environment would lead to poor, shallow, and mistrustful

relationships. The legitimate human needs for self-reliance, self-expression and

accomplishment are subverted. Dissatisfaction and frustration breed

unhappiness. If makes immensely difficult for managers to meet organisational

goals. Employees should have interpersonal competence and we should provide

a psychologically safe environment. Otherwise employees will become easy

victims of mistrust, inter-group conflict and rigidity, which will harm the

organisations wellbeing and success. As an alternative, Argyris argued for an

organisational design that would better meet human needs and increase the

satisfaction of its people.

Likert (1961,1967, 1973, 1973), on agreeing with the views of Argyris said

that traditional authoritarian management’s were less able to motivate their

employees to higher standards of achievement than managements, who actively

supported their subordinates feeling of self, worth and important. Rensis Likerts

63

always insisted for a scientifically based theory of management. He said

“supervisors with the best records of performance focus their primary attention

on the human aspects of their subordinates problem and on endeavouring to

build effective work groups with high performance goals”. He developed the ‘four

system management theory’ to describe different organisational designs and

their effectiveness. These systems are;

1) Explorative-authoritative, where power and authority are strictly used. Fear is

used as motive and trust is virtually absent.

2) Benevolent-authoritarian, where economic rewards are used as motivating

force and some upward communication is permitted

3) Consultative which is Likert's ideal management style and

4) Participative, which is an optimal approach to manage people in our dynamic

and educated society. Advocates of the fourth style believe that this system is

universally applicable and it is the best way to organise modern society.

2.2.7 Organisational Development Movement (1950 - to the present)

Organisational Development Movement came into prominence based on

the felt need in the field of organisational behaviour, where conventional methods

have only limited success. Organisational development as an intervention

strategy focuses on the whole culture of an organisation in order to bring about

planned and desired change. “Organisational development is a top management

64

supported long-range effort to improve an organisations problem solving and

renewal processes, particularly through a more effective and collaborative

diagnosis and management of organisational culture-with special emphasis on

formal team work, temporary term and inter group culture-with the assistance of a

consultant facilitator and the use of the theory and technology of applied

behavioural science, including action research”.(French and Bell 1991 :17).

The works at National Training Laboratories in the early 1950’s and at

ESSO Oil company in the late 1950’s are considered as the preliminary efforts in

the field. Robert Blake and Jane Srygley (1964), on the basis of a study of about

5000 managers in several types of organisations formulated a nine point scale

with 81 different positions in which a leaders style may fall. Herbert Shepard has

conducted experiments at ESSO during 1950’s and 1960’s and later applied it to

the community problems. Robert Tannenbaum in 1952 and 1953 conducted the

sessions on ‘team building’, at the US Naval Ordinance Test Station California

and also led the first non-degree training Programme in 1967. Richard Beckhard,

WW Burke and FI Steels have their contributions in the organisation of training

and development. Warren G Bennis, has published his views on the nature, origin

and prospectus of the organisational development. Kurt Levin, Kenneth Benne,

Leland Bradford and Ronald Lippert are well known for their experiments and

research at the State Teachers College in Britain in the late 1940’s and early

65

1950's. WR Bion, John Rickman and Eric Trist, Floyd Pann and Renesis Likert are

known as the Tavistock Clinic Team, who developed the survey research and

feedback method at the Survey Research Centre, University of Michigan.

Organisational Development emerged largely from applied behavioural

sciences and is a confluence of four major streams.

1) Laboratory training to find solutions to work team and systems problems.

2) Innovations focusing around the effective feedback of attitude survey data.

3) The emergence of action research techniques and approaches.

4) The emergence of socio-technical and socio-cultural approaches to improve

organisations.

In a typical organisational development Programme, action research involves

gathering information through interviews and questionnaires, making that

information visible and then facilitating employee participation in a diagnostic

and problem solving effort. The technique of organisational development may

involve laboratory training, managerial grid training, survey feed back, team

building, process consultation, job enrichment, behavioural modification job

design, stress management, career and life planning, management by objectives,

sensitivity training, role playing, gaming and behavioural modelling as part of the

overall approach.

66

The steps involved in the OD process include problem recognition,

organisational diagnosis, feedback, development of change, interventions,

measurement and evaluation and feedback. (Rush 1973 : 6). The consultant, in

the process acts as a facilitator and catalyst. At the appropriate time, he also

throws in short lectures and exercises on decision-making, team building, group

interaction and problem solving. He also encourages openness and objectivity.

The exercise concludes with a mutually agree ‘strategy for change and an

understanding to meet again after a lapse of time to measure and evaluate the

results of the OD efforts. Thus OD becomes a continuous process-planned,

systematic and focussed on change with overall and clear objective of increasing

and improving the effectiveness of the enterprise. Thus organisational

development focuses on whole organisation for problem solving, experimental

learning and group processes, feedback, contingency orientation, and team

building. Managerial Grid is also a form of team building. Organisation

Development places heavy reliance on group processes with the principal

objective of improving interpersonal relations, establishing open communication

channels, building trust and encouraging responsiveness to others. This group

process includes role-playing, gaming, sensitivity training, transactional analysis,

process, consultation, encounter groups etc....

67

2.2.8 The Process System View

It was perhaps Chester I Bernard, who in 1938, provided a comprehensive

explanation of the modern view point. He considered the individual, organisation,

suppliers and consumers as part of the environment. Winer’s (1948) pioneering

work on cybernetics developed concepts of systems control by information

feedback. Kenneth Boulding propounded General systems theory (GST). The GST

approach suggests nine levels of systems complexity. They are the level of

frameworks, level of clockworks, cybernetic systems, open systems level,

genetic-societal level, animal level, human level, social organisations level and

the level of transcendental systems. (Kenneth Boulding 1956 : 197) The systems

approach points to the interdependent nature of everything that forms part of an

organisation. Systems approach deals with formal organisations and concepts

relating to different disciplines such as technical social, psychological and

philosophical. Specific management systems deal with aspects relating to

organisation structure, job design and specific functions of management. A

closed system operates in closed lop, devoid of external inputs. An open system,

in contrast, is a dynamic input-output system with, in contrast, is a dynamic

input-output system with continuous interaction with the environment.

The works of D.Katz and R.L.Kahn (1960) provide the intellectual basis to

merge classical, neo-classical and modern view points. This belief in viewing

68

organisations as open systems widened the perspective further and led to the

development of a ‘contingency approach incorporate the environmental variables

and relates them to management variables. The underlying logic is that concepts

relating to organisations and management work differently in different situations

or environments. Jay Galbraith's (1973) modern structural organisation theory

highlights the information-processing model and captures the essence of the

systems, contingency perspective on organisations. He constructs theories

about the amount of information and organisation must process under different

levels of (1) uncertainties, (b) interdependence among organisational elements,

and (c) organisational adaptation mechanisms.

2.2.9 Corporate Culture Analysis

Corporate Culture Analysis deals with the analysis of corporate culture

and the relationship between culture and human resource practices. Culture can

be inferred from what people say, do and think within an organisational setting.

The reflections of this culture set the tone for the company and establish the

framework for its human resources policies and programmes. Many analysts

have called this relationship between culture and human resource practices as

‘symbiotic’. Peters and Waterman (1982) said that only companies with broader

set of value could show excellent performance. Financial goals alone will not help

the company to prove its effectiveness. Their research is explicitly about human

69

nature and the ways that people interact in organisational settings. Building on

the work of Herbert Simon, organisation theorist Kal Weick, social psychologist

Stanley Milgram and others, Peters and Waterman deducted some general rules

for treating others with dignity and respect and proper expectation about their

work capabilities. William G Ouchi (1981) started from where Me Gregor had left

and put forward the theory Z. The theory Z represented a corporate culture that

was people centered, where concern for the individual employee was the over

riding principle. By this approach each member of the organisation gets a sense

of strategic vision or a holistic view of the direction of the whole organisation and

thus including commitment through individual ‘internalising’ the culture of their

company.

2,3 Human Resource Management Approach

Since management is responsible for getting the assigned task done

within the given time, with the given resources and in a particular manner, it can

be said as process of getting things done through people by effective utilisation

of resources, time and environment. There are five basic elements such as

planning, organisation, co-ordination, control and motivation. There are also

many other sub-functions that are associated with it. These functions include

both technical and non-technical. Non-technical functions are mainly the

70

activities of the people that are to be co-ordinated and regulated by the

management. So it is also called a social or socio-technical process.

Management as we know “has to make productive, the values aspirations,

and traditions of individuals, community and society for common productive

purpose “ (Peter Drucker). Our greatest asset is people. Most managers know

perfectly well that of all the resources, people are the least utilised and little of the

human potential of any organisation is tapped and put to work. The manager

must treat the people with whom he works as a resource to himself. He has to

took to them for guidance regarding his own job”. (Drucker). “The effective

utilisation of an organisations employees is most often the crucial factor in the

successful accomplishment of its mission. Regardless of the amount of

computerisation that had taken place in offices, or implanting robots in factories

all companies and organisations require people to perform their work. Managers

are successful only if their employees are successful. “The truly successful

organisation accomplishes its mission through development of its human

resources to their fullest potential'. (Nadler and Wiggs 1986). Peter Drucker

(1960) said, “Japan greatest lesson to the world is putting to work her traditions

of community and human values for the new ends of a modern industrialised

state. They alone have succeeded in this. They know that management is both a

science and humanity”.

71

HRM is concerned with the people dimention in management. Since

every organisation is made up of people, acquiring their services, developing

their skills, motivating them to high levels of performance and enduring that they

continue to maintain their commitment to the organisation, are essential to

achieve organisational objective. “Human resource management is the

systematic control of a network of inter related processes affecting and involving

all members of an organisation”. (French and Cecil 1991: 17ff). HRM is a strategic

approach to the acquisition, motivation, development and management of the

organisation’s human resources. HRM should always look forward to what needs

to be done and then doing it rather than waiting to be told what to do. The

techniques of the application of HRM will include many familiar functions of

personal managers, such as manpower planning, selection, performance

appraisal, salary administration, training, and management development. Special

Programmes designed to improve communication systems, involvement,

commitment and productivity will overlay these. In its essence, human resource

management is the qualitative improvement of human beings, who are

considered the most valuable assets of an organisation - the sources, resources

and end-users of all products and services. The approach of human resource

management is multidisciplinary from the beginning to the end. It is a scientific

process of continuously enabling the employees to improve their competency

and capability to play their present and future expected roles. So that the goals of

employees are also met to an adequate extent. Under the HRM approach, some

basic assumptions about human resource are as follows: (Sarma 1995 :12).

1. The members of an organisation are reservoirs of untapped resources.

2. There is scope for unlimited development of these resources

3. It is more in the nature of self development than development thrust from

outside

4. The organisation further develops a culture in which utmost emphasis is

placed on harmonious superior-subordinate relations, teamwork,

collaboration among different groups of individual, open communication, and

above all, integration of the goals of the organisation with the needs of the

employees

5. Top management takes the initiative of HRM formulates necessary plans and

strategies and creates an overall climate and support for its implementation

73

the organisation are achieved more fully and at the same time the needs of the

2.4 Human Resource Management Programmes

The Programmes of human resource management are modulated in such

a way to achieve the fullest development of human resources with all

consideration of its specific characteristics and the other related social realities

and processes in the organisation and society. It is essential that HRM systems

should be designed in the framework of the total organisation. HRM efforts fail

miserably in such organisations where do attention is paid to these systems.

There are specific Programmes of HRM which, when taken up comprehensively

lead to the complete and satisfactory implementation of the HRM system. We can

broadly identify six clear Programmes.

2.4.1 Human Resource Organisation

The fundamental objective of human resource organisation is to ensure

that every aspect of the organisation is integrated with the strategic objectives of

the business and contribute to the successful achievement of those objectives.

Organisational development Programmes and interventions are needed to

achieve better integration, improve teamwork, motivate human resource, develop

proper leadership facilitate communication system, manage conflict and change

and obtain commitment. Thus human resource organisation is concerned with

achieving success by organisation design and development, motivation, the

application of effective leadership and the management of organisational culture.

Thayer (1968) has divided the functions of communication into information

function, command and instructive function, the influence and persuasion

function, and the integrative function. The information function serves to provide

knowledge to the individuals needed guidance in their actions. It also fulfils

74

workers desires for awareness of things that affect them. The command and

instructive functions serve to make the employees aware of his obligations to the

formal organisation and to provide him with additional guidance on how to

perform his duties adequately. The influence and persuasion function (also

known as motivational function) encourages the appropriate individual to perform

or to exhibition a certain behaviour. The integrative function refers to the fact that

the communication of message I ideas, if properly handled, should help to relate

the activities of the workers to their efforts compliment rather than detract from

each other.

Likert (1961) says that there is the contingency model of leadership, which

states that the most appropriate leadership style depends on the situation in

which the leader works. Any style can be effective or ineffective depending on the

situation and the leader should have an adaptive style that leads to effectiveness.

Another popular approach for identifying leadership style is the managerial grid.

It has five basic styles, each representing a combination of two dimensions,

namely concern for people and concern for production. Likert suggests that the

participatory style is most effective, but its application differs depending upon

the nature of the task and the impact of the intervening variables. Chakraborthy

and Bhattacharya (2001) classified leadership into secular insights, spiritual

insight focuses on the lessons from Swamy Vivekanandan and Mahatma Gandhi.

75

Applied insights pertain to a variety of applications of leadership vis-a-vis power

in different segments of the society. Sagacious insights seek to draw lessons

from Indias rich heritage and ancient scriptures including the Ramayana and

Mahabharatha. Sreenivas Pandit (2001) ways that leadership is the art of creating

an impulse, an urge in other to do something, which the leader desires that they

do. Leadership is an action, it is not just a word, nor a theory. The difference

between a leader and an authority is that a leader inspires, motivates and

stimulates a group of people to follow voluntarily even eagerly.

2.4.2 Human Resource Planning

Human resource planning is the process of assessing the needs of the

organisations human resources in the light of the organisational goals and

making plans to ensure that a competent, stable work force is employed. The

starting point of effective human resource planning is the organisations over all­

purpose or mission, which is called the mission statement. From this the

strategic plan is derived. Strategic plan deals with conducting the business as

profitably and successfully as possible. Then the organisational goal is

developed. Organisational goal is the long-term result of the overall activities. It is

operated with the help of specific objective. The planning process includes an

analysis of skill levels among employees, skill level in the external labour market,

76

current and expected job openings, plans for expanding the reducing staff and

the assessment of the external legal environment.

2.4.3 Human Resource System

Human Resource systems are the essential programmes needed to

recruit, appraise, pay and look after the health, safety and well-being of the

employees in the organisation .The main key programmes are: recruitment,

management, information management, training management, performance

management, regard management, health and safety management, discipline

management and culture management.

2.4.4 Human Resource Development

Lippert (1978) points out that HRD as a system depends on

a) the work itself which generates a higher degree of responsibility for the

employees

b) the individuals personal and professional growth

c) the improved quality output as a result of increased responsibility

d) the organisation as an open system

77

Focus on all these aspects is what HRD is all about. Rao (1985) defines HRD as “a

process by which the employees of an organisation are helped in a continuous

planned way to;

a) acquire of sharpen capabilities required to perform various tasks and

functions associated with their present or expected future roles;

b) develop their general enabling capabilities as individuals so that they are able

to discover and exploit their own inner potentials for their own and or

organisational development purposes; and

c) develop an organisational culture where superior-subordinate relationship,

team work and collaboration among different sub-units are strong and

contribute to the organisational health, dynamism and pride of employees”

2.4.5 Human Resource Relationships

The aim of human resource relationship is to increase co-operation and

trust among employees and involve them actively in the organisations

programmes. Human resource relationships deal with the handling the

employees individually and collectively as members of trade unions or staff

associations. An approach to collective dealing should be:

a) recognition of the union;

b) the respective role performance of management and union;

78

c) the type of procedures one can adopt to regularise relationships with

unions;

d) the basic techniques of negotiating with unions;

e) the mechanism of involvement through participation, both traditional

forms of joint consultation as well as the method of quality circles.

2.4.6 Human Resource Utilisation

In order to achieve productivity through people it is very essentia! to “treat

them as adults, treat them as partners, treat them with dignity, and treat them

with respect” (Peters and Waterman 1982). The following actions are required to

improve the use of human resources;

a) conduct productivity drive;

b) improve manpower budgeting and control techniques;

c) introduce work measurement;

d) use appropriate payment method by results; bonus and profit sharing

schemes;

e) improve motivation;

f) involve employees in improvement programmes;

g) introduce new technology;

h) negotiate appropriate productivity agreements; and

i) introduce training programmes based on an analysis of productivity needs.

79

2.5 Human Resource Development

People need competencies such as knowledge, attitude, values and skills

to perform tasks. Higher degree and quality of performance of tasks requires

higher level or degree of skills. Without continuous development of competencies

in people an organisation is not likely to achieve its goals. Competent and

motivated employees are essential for organisation survival, growth and

excellence. If is well recognised every where that human competency

development is an essential pre-requisites for any growth and development

effort. Now enterprises are becoming more aware that human resource is the

most valuable asset to the organisation. Hence every organisation takes all

efforts to develop its own human resources to suit their specific needs. Human

resource development is a process. It is a mechanism to initiate, facilitate and

promote the process is a continuous way in order to retain the capabilities.

HRD has two main purposes: to provide employees with a greater

opportunity to grow and succeed within a company and to strengthen

management and professional teams at all organisational levels. Further more, it

aims at developing employee capabilities in line with their career interests and

with the manpower needs of the company. The primary responsibilities of a HRD

manager are:

1) to act as an internal change agent and consultant;

80

2) to initiate change and act as an expert and facilitator;

3) to actively involve himself in company’s strategy formulation;

4) to keep communication lines open between the HRD functions and

individuals and groups both within and outside the organisation;

5) to identify and evolve strategies in consonance with overall business

strategy;

6) to facilitate the development of various organisational teams and their

working relationship with other teams and individuals;

7) to try to relate people and work so that the organisational objectives

are achieved effectively and efficiently;

8) to diagnose problems and to determine appropriate solution,

particularly in the human resources areas;

9) to provide co-ordination and support services for the delivery of HRD

programmes and services and

10) to evaluate the impact of HRD intervention or to conduct research so

as to identify, develop or test how HRD has improved individual or

organisational performance.

In order to build human competencies, to build an appropriate climate and

to improve employee satisfaction at work (competency development, climate

building and innovation development) many organisations have set up separate

81

82

departments which symbolise the recognition of the importance of peoples

competency development. In addition to the well-known mechanisms of training,

mechanisms such as performance appraisals, potential appraisals, feedback and

counselling, mentoring, job-rotation, OD interventions, career development

systems etc... are also being used to develop the human resources.

Shaw (1991) makes an analytical study of the present training programmes

and highlights the deficiency of the system. He brings to the forefront the

concept and technology of andragogy (the science of adult learning), in contrast

to pedagogy (the science of child learning), which is the base of the existing

training system. The author tries to visualise training as a profession,

highlighting its constituent elements. Peter Villers (Amazon.com) in his book “18

Training Workshops for Leadership Development” gives trainers the complete

lesson plans and materials needed to conduct productive and exciting

workshops in 18 key areas of leadership skills. The workshop designs include,

formal and informal leadership, leadership and cultural change, putting values

into practice, the press conference, leadership and conflict resolution, chairing,

power of authority, and the difference between leadership and management.

Robert L Craig (1996) narrates hundreds of practice-proven techniques which can

be used to develop effective leadership skills, exploit self directed learning to

meet empowerment, continuous improvement of quality, develop professional

training staff, build employee participation and involvement, prepare for

organisational development and change and evaluate training results. The ASTD

Handbook of Training Design and Delivery” explains the advantages and

weakness of many important training approaches. It provides the essentials for

preparing an effective lessor plan, choosing the most effective visual aids and

learning to present new knowledge and skills so that trainees will understand and

apply what they learn. This handbook has been created in response to dramatic

changes and advances in training Programmes, including web-based training and

technology based instruction. In evaluating training Programmes, Donald

L.Lrikapatrick (1998) encapsulates his lifetime experiences to provide real

solutions to the training evaluation dilemma through a comprehensive step-by-

step guide.

Many methods are being used for performance appraisal. Rating scale is

one among them, which is the oldest and most widely used. For lower level

employee typical qualities rated are quantity and quality of work, job knowledge,

co-operative attitude dependability, initiative, industriousness, and willingness to

accept responsibility and attitude. For managerial person, the attributes included

are analytical ability, initiative, knowledge of work, imagination, interpersonal

skills, planning and conceptualising abilities (Casio 1989). For performance

appraisal there are several different sources of appraisal information. One of the

most widely used measurement techniques classifies them into three distinct

approaches. They are comparison to job standards, comparison between

individuals and comparison to agreed objectives. Comparison to job standard

includes essays, checklists, critical incidents, rating scales, and behaviourally

anchored rating scales (BARS). In the second approach one person is compared

with all others for the purpose of placing them in a simple order of rank, based on

worth to the organisation. Under the third one comes management by objective

(MBO). MBO is not a measure of employee’s behaviour rather it is measure of

each employees contribution to success of the organisation (Milkovich, Boudreau

& Boston: Irwin Inc 1991). James E Neal (2000) describes about 2000

professionally written phrases, which will clearly illustrate all the activities of

performance appraisal. This is book will also help people who has to write

appraisals of employees, providing hundreds of proven descriptions of

motivation, personal qualities, organising skills, productivity etc... Strauss and

Sayles (1985), have classified performance appraisal into three groups. They are

traditional performance rating, newer rating method and result-oriented appraisal.

Traditional is by the completion of a form. The newer rating method includes rank

order, paired comparison, forced distribution, forced choice, critical incident and

field review. The third one is ‘management by objective' - “Management by

objective is a process whereby the superior and the subordinate managers of an

organisation jointly identify its common goals, define each individuals major

areas of responsibility in terms of the results expected of him and use this

measure as guides for operating the unit and assessing the contribution of each

of its members” (Strauss and Sayles 1985). Rigors and Myers (1973) also

suggests several steps to develop and administer the appraisal programmes

effectively.

Job enrichment programme, as an ongoing phenomenon of managing

people, has become very essential and the need has been felt by many

progressive organisations to introduce it. Huckman, Lawler and Edward (1977)

say that there are five core dimensions that provide enrichment of jobs. These

are; task variety, risk identity, task significance, autonomy and feedback.

Knowledge about jobs and their requirements are collected through a process of

job analysis. E.J.Mc Cormick (1976) in his article “Job and Task Analysis”

illustrates the kind of data generation that is achieved through a comprehensive

job analysis. They are work activities, worker-oriented activities, machines; tools;

equipment and work aid used, job related tangibles and intangibles, work

performance, job context, and personal requirements for the job.

Stress is a major concern is organisations. “Stress means any force that

places on the individual a psychological or physical factor beyond that

individuals range of stability, producing a strain within the individual” (Cooper

85

1988). In 1946 Sayle provided a helpful model outlining the process or stress-

related illness. There are three stages of stress. These are alarm stage, resistance

stage, and the third one is the resistance collapsing stage. In his book ‘Human

Behaviour at Work’ Keith Davis (1990) describes the different behavioural

patterns and the related variables. About the importance of job design, he says

that there are some specific needs to be fulfilled. Davis says, “essentially the

human resource approach means that better people achieve better results”. In the

book ‘Secrets of Executive Success’, Golin, Bricklin etc... (1991) describes some

of the approaches for organisations that consider that winning in very important.

They are;

1) treat everybody with respect and as a potential source of valuable

insights;

2) encourage people to suggest new ways for doing things;

3) enjoy your work;

4) speak with pride about your organisation;

5) initiate changes;

6) be willing to take on responsibilities;

7) bring uncomfortable issues out in open and

8) feel free to disagree with our superiors and others in the group.

86

On dealing with organisations Samuel and Peter (1991) has identified the

characteristics of effective companies and ineffective companies. The

characteristics of effective companies are;

1) genuine concern for people; a positive view employees assets,

2) good training;

3) good pay and good compensation Programmes;

4) able to retain employees;

5) good internal communication and

6) top management committed and supportive of human resources and

encourage employee participation.

Management process is made up of four steps embarrassing the ‘people’

dimension getting them, activating them and keeping them. (Mamoria 1994).

Tornow and London (1988) brings to light the 28 years experience of the Centre

for Creative Leadership to give human resource managers, consultants and

systems designers some specific view to improve individual and organisational

performance through their '360 degree feedback’. In their book ‘flexible learning’

Jakupec, Garrick and Routledge (1999) addresses contemporary contexts of

flexible learning and its practices and provides insights about directions which

education and training provides are required to follow in order to implement

flexible learning to in a variety of settings.

87

Scarcity is the basic economic problem confronting all humanity and

humanity has struggled for centuries to overcome it. Senyo and Adjibolosoo

(1998) argues that the root of development problems lies in continuing human

factor decay and under development. For successful economic development

every country must focus on human factor development. Their book explores that

concept of scarcity and its significance to the evolution of the existing social

order and political economy of nations.

In organisational learning, performance and change, Jerry W.Gillery and

Ann Maycunich (2000) present a complete and comprehensive introduction to the

field of strategic human resource development, integrating principles and

insights from the three major schools of thoughts and practice; learning,

performance and change, learning organisations’ is a new concept. Learning

organisation takes care in promoting a culture of continuous innovation,

performance improvement and employee growth (Jerry W.Gilley and Ann

Maycunich 1999). To facilitate the development of a learning organisation,

training becomes an important operation, in the ‘Learning Alliance’, authors

Robert O.Brinkerhoff and Stephen.J.Gill (1994), how managers, supervisors,

trainees and training professionals can collaborate to manage systematically the

process of learning and behaviour change and consistently deliver the cost

88

89

effective results needed to build and sustain an organisation’s competitive

advantage.

The quality of workforce is an asset to any organisation. Herman and Gioia

(2000), suggests that we have to attract good people, optimise their resources

and keep with us the food people we are having. Pat Hargreaves and Peter Jarvis

(2000), deals with the current staff development practices. They also provide

relevant theories of training in the late 1990’s. Johnson and Broms (2001) say that

by focusing on its member’s activities, the manager has to improve the systems

capability to serve the needs of the customers. This is called ‘management by

means' (MBM). The managers who are responsible for bulldozing everything on

the pathway to increase the shares holders wealth, did emerge as the most ardent

advocates of the principle of ‘Management by results’ (MBR). In Turnround and

Excellence' Pradip N Khandwalla (2001), says that ‘turn-round’ is recovery to

profitability from a loss situation, Turn-round management is not far from usual

management techniques. Turn-round management involves application of

conventional management techniques in a rather unusual environment. Sastry

(2001), in his ‘Dharmic Values and Human Resource Management’ adds yet

another dimension to human resource problems and perspectives. He puts

forward the application of Dharmic values to modern managerial practices. In the

‘Changing Patterns of Human Resources Developmental Farhad Analoui (2001)

discusses the changing role of human resource management on an international

spectrum. The author critically assesses the human resource development in the

context of public organisations, private organisations and non-governmental

organisations.

William A Howatt (2000) provides an overview of the 12 major theories and

corresponding techniques with a special focus on helping readers to develop

their own counselling styles. The theories of Carl Rodgers (Person Centred

Therapy), Carl Jung (Jungian Philosophy), Alfred Adler (Adlerian Psycho

therapy), Eric Berne (Transactional Analysis), Fritz Peris (Gestalt Therapy),

Richard Bandler and John Grinder (Neugolinguistic Therapy), William Glasser

(Choice Therapy and Reality Therapy), Aaron Beck (Cognitive Therapy), Albert

Ellis (Rational Emotive Behavioural Therapy & Virginia Satir (Behavioural

Therapy, Family system therapy). In addition to the theories the author also

presents the first aid counselling, covering crisis management and interventions

for suicide, addictions, grief, eating disorders, stress and verbal crisis.

2.5.1 HRD in the World Scenario

A peep into the world scenario of human resource development is relevant

because of the knowledge in the changed situations will enrich the study of

human resource development. Increasing collaborative ventures between India

90

and foreign corporations, the import and export of technology and other

resources, and an anxiety for effective partnerships heighten concerns about

human resources management and development in other countries.

“Management is management wherever practised, a universal profession

whose principles can be applied in every form organised activity”. (Austin Tobin

1965: 305). Such a view has found support in some well-known research findings.

A classic study is that of Harbison and Myers who studies management did not

differ fundamentally from country to country (Harbison and Myers 1959). On the

other hand, another school of thought, which has gained much prominence in

recent time, has challenged the notion of the universality of management.

Winston Oberg argued that the ground rules under which managers operate are

different across countries and that, therefore, it is fruitless to search for a

common set of beliefs and values underlying management practices which differ

with culture and social context. (Newman 1970 : 7). Indians, because of our social

and cultural background, have a strong need for a tough but nurturing style of

management, which is authoritarian but also benevolent. (Sinha 1979 :109)

The understanding of HRD in the USA is best reflected in the definition by

Leonard Nadler that HRD is “organised learning experiences in a definite time

period to increase the possibility of improving job performance growth. (Nadler

91

1984:1). South American countries range from Costa Rica to Brazil. The entire

region is characterised as developing. Industrialisation has come only recently to

this continent. South America is affected by long -standing problems of over

population and lack of adequate education. The end result is that there is a large

workforce without the skills required for industrialisation (Nadler 1884). In

Western Europe the main focus of HRD appears to be on training and educational

activities. It gives much emphasis to the building of specific skills. One of main

HRD related concerns in Western European countries is the impact of the new

technology on people. The role of the HRD practitioners is seen most frequently

as being that of helping people deal with the problems of change (Nadler 1984).

Africa is the least developed of all the worlds continents. African

governments have generally concentrated on capital and physical resources to

the neglect of human resources. In most African countries, HRD has been

institutionalised. A heads of State summit in Lagos in 1980 is a landmark for HRD

in Africa (Nadler 1984). Of all the regions of the world, Asia probably presents the

greatest contrasts. It contains one of the most developed countries, namely

Japan and also some of the least developed.

In an advanced economy like Japan, there is a long tradition HRD.

Japanese organisations are known for their unique development schemes,

92

quality circles, participation methods, life-long employment etc... Srilanka,

Thailand, Indonesia, Malaysia and Pakistan have formal organisations for

manpower training and development. In the Philippines, the productivity and

development Centre is working on awareness programmes related to increasing

productivity. Nepal which is yet poorly industrialised has set up an Industrial

Service Centre to conduct studies for HRD need identification and prepare HRD

programmes (Nadler 1984).

2.6 Human Resource Development Mechanisms

The objective of any human resource development effort is to build human

competencies, to build an HRD climate, innovation and development. Human

Resource Development, therefore, should be a continuous process in

organisations. The nature of efforts and investments put into develop human

resources may vary from organisation to organisation depending on its need,

nature, size etc... This may also vary from time to time in the same organisation

depending on the nature of change the organisation is going through or the

nature of capabilities the organisation wants to build within it. There are many

methods or instruments available for organisations to develop employee

competencies.

The instruments of HRD are many. The HRD instruments should lead to

the generation of HRD process like role clarity, performance planning,

development climate, risk taking, dynamism, collaboration and team work,

awareness of competence required, trust, authenticity, openness, norms and

standards etc... Such HRD process result in more competent, satisfied, and

committed people, that would make the organisation grow by contributing their

best to it. The HRD mechanisms or instruments are performance appraisal,

review discussions; feedback and counselling role analysis exercise, potential

development exercises, rewards job enrichment programmes etc....

The most frequently used development instruments re-performance

appraisals and training programmes. Many organisations are still mixing up

developmental goals with control and administration goals and thus reducing the

effectiveness of appraisals. Those organisations that emphasis performance

reviews, discussions, counselling sessions, etc... rather than appraisal ratings,

promotions and rewards, seem to achieve HRD goals far more and far better.

However, accomplishing HRD goals through performance appraisals is less

visible and much slower than achieving HRD goals through training, although the

nature of HRD goals achieved through these two types of instruments are

different. Role analysis exercise has helped a great deal in some organisations to

bring about role clarity and setting the climate for development. Very few

94

organisations are using job-rotation as a HRD mechanism. OD exercises are

being used by a few organisations largely for developing team spirit, teamwork

and interdepartmental collaboration. Potential development exercise has not yet

begun to take shape.

2.7 HRD in Service Sectors

Traditionally economic theory looks at society as consisting of three main

sectors. These are the agricultural sector, industrial sector and the service

sector. The service sector comprises activities and occupations, which provide a

wide variety of services to individuals, business and government establishments

and other organisations. Services create value by providing a bridge between the

production and consumption segments of society. This is why the growth of the

service sector in modern society is linked with the increased productivity of the

manufacturing sector, (Athreya 1985 : 46). A major characteristic of modern

socio-economic development has been the increasingly dominant role of the

service sector. As an economy develops the relative contribution of the primary

and secondary sectors to the total economy decreases, where as that of the

service sector increases.

Unlike goods manufactured in agricultural and industrial sectors, a service

is intangible and perishable in the sense that a consumer cannot store a service.

95

Thus in the service sector the production and delivery of goods are carried out

simultaneously. The consumer therefore is an integral part of the whole service

delivery system. (Sehgal 1985 : 182}. By extending service to the people of all

social and economic segments, service sector provides opportunities for

development and for reduction of socio-economic disparities. They enable the

weaker section to have access with the benefits of modernisation. The services

themselves have an HRD effect, first by developing individuals and deprived

groups, and secondary by gradually changing societal culture towards a more

egalitarian, democratic direction (Athreya 1985 : 46-48).

Service sector has some special features, which call for particular

emphasis in the design and implementation of HRD systems. These are;

1) Intangibility of products: Service is the provision of value to the customer,

without a physical product. This could create lack of clarity about the tasks

and erosion of self-confidence. So HRD has to create appreciation of client

needs and pride in the potency of the service to meet those needs.

2) High public exposure: The service institution is much more exposed to its

clientele. Even if the institution does not proactively promote its service, the

clients may take the initiative and best at its doors. The staff needs relation­

96

ship skills and tolerance of customer reactions. In the case of subsidised of

free services, some customers may be arrogant in their demands and misuse

the service, while some others may be less literate, gullible and timid.

3) Size constraints: To be effective, the service institutions should be perceived

as a huge, slow, monolith, in the face of which the consumer is anonymous

and insignificant. Conceptualisation of roles is especially important. The roles

at the environment I customer interference need to be so designed as to

enhance service.

4) Back-room technology: At the customer end, a service has to be simple to

understand. For example air travel should be made easy, but behind it there

may be complex procedures and technologies. We have to ensure that those

at the delivery end of a service institution understand the power and

limitations of this back-up technology, while at the same time the technicians

understand customer needs, abilities and limitations

5) Special knowledge: The level of general and specialised education tends to be

relatively high in service institutions. In fact, a service institution like a

consultancy, has to be intellectually a few steps ahead of its clients to be of

real value to them. So, a research and learning orientation is needed. The

97

service institute tends to have preponderance of white-collar workers and

executive manpower. Their motivation is more complex. Besides monetary

rewards, they look more for ego satisfaction and quality of work life.

Propensity for disintegration: Service institutions seem to have a higher tendency

to disintegrate. Depending upon bruised egos, personal ambitions, inequality

etc... rebel groups break away from the mother organisation and form new ones.

Therefore, HRD needs to provide for more participation in planning and control of

the projects, as well as sharing of rewards, whether psychic satisfaction, fame,

visibility, profits or upward mobility (Athreya 1985 :46-48)

HRD is most needed in a country like India for the development of service

sectors. Our Schools and colleges, universities, research institutions, agricultural

development agencies, district development agencies, health centres,

panchayathraj institutions, voluntary organisations etc... need continuous

competence development of their staff who have to act as agents of development.

Development agencies require a high degree of motivation and complex skills to

deal with people, particularly in rural area and influence their attitudes, habits and

behaviour. Unfortunately very little is being done so far apart from increasing the

number of training programmes for these agents. Training programmes by

98

themselves may have a limited impact on developing complex competencies. So

a more serious and concerted effort is highly inevitable.

2.8 HRD in Rural Areas

India is predominantly a rural and village based society. Thus in the India

context, rural development assumes special significance. It is mainly because of

two important reasons. First, about two thirds of the population still lives in

village and there can not be progress so long as rural area remain backward.

Second, the backwardness of the rural sector would be a major impediment to the

over-all progress of the economy. The industrial sector cannot think of sufficient

demand for its products so long as the rural income is low. (Satya Sundaram

1997). This is why the concept of rural development and the strengthening of

rural based administrative institutions have continued to enjoy high priority in the

development policies and strategies of the country. “As some scholars maintain,

what happens in national development is measured by the relevance of what it

does or fails to do for or with the rural people”. (Bogaert 1985: 4).

The rural situation in the country is still plagued with social and economic

problems. Several years of development efforts have not succeeded in

eliminating age-old problems. Large sections of our population still suffer from

lack of minimum needed in the areas of health, nutrition, education and other

99

subsistence facilities. They are vulnerable both to natural calamities like floods

and droughts as well as to the exploitation of vested interests and money

lenders. Their level of economic productivity is low and they lack adequate

delivery systems for employment and industrialisation. (Malathi Bolar 1985 : 16).

Rural labour is another most disadvantageous section of Indian population. Rural

labour is another most disadvantageous section of Indian population. Rural

labourers have not benefited much from the general socio-economic

development witness after independence. Intervention of administration,

operation of market forces and activities of trade unions and political party’s etc

are the major impediments (Radhakrishna & Sharma eds. 2001)

2.9 HRD in Panchayatraj Institutions

In the early stage of India’s development as an independent country, it

was recognised by visionary leaders like Mahatma Gandhi and Jawaharlal Nehru,

that the development of the rural area needs to be vested largely in the hands of

the people by the setting up of appropriate socio-political institutional

mechanisms. The main such institution is the village panchayat. In the directive

principles of the constitution, it is said “the state shall take steps to organise

village panchayat and endow them with such powers and authority as may be

necessary to enable them to function as units of self government. Based on that

100

the three tier panchayatraj institutions at the village level, block level and district

level were started functioning (Nirmal Mukarjji 1986: 235).

The role that panchayatraj was expected to fulfil was;

1) to encourage participatory decision making at the micro social level by

involving people in decision making relating to various activities

affecting them;

2) look after day to day administration of local areas by mobilising

resources and administering day-to-day facilities;

3) formulating micro-level plans on the basis of the constraints of

development;

4) taking care of local physical infrastructure; and

5) working for the awakening of the people and making them aware of

their plight and rights. (Indira Hirway 1989 :1663).

For the inefficient functioning of the panchayathraj system, there are some

critical reasons, which are attributable to the absence of adequate attention to

human resource development. For a long time, the leadership of the local

panchayat was in the hands of the vested interests. Recent indications, however,

are that the middle class group of educated farmers and local businessmen are

beginning to contest (Surat Singh & Rahim 1989: 429). A second reason has

101

been the absence of trained competent people to carry out the tasks of

administration in the panchayathraj bodies. Such tasks require not only

functional skills such as financial management and technical skills for basic

management and organisations, but also appropriate attitudes and values.

(Bogaert 1985: 24-29). The absence of proper and adequate organisational

structures and institutional mechanisms to lend stability and continuity to the

panchayatraj institutions is another reason for the poor performance of these

bodies.

From the HRD point of view, the major priorities for the success of

panchayatraj and rural development institutions are;

1) clarifying purposes and ensuring that these are reflected in pertinent

strategies, policies and Programmes;

2) developing people as change agents and as cultural bodies to bring

about necessary transformation in dysfunctional cultures existing in

the rural areas;

3) training and development in order to enable people develop their

capabilities and potential for productive employment;

4) strengthening panchayatraj and other organisations engaged in

development;

102

5) increasing administrative accountability through task clarity and

appropriate monitoring and appraisal mechanisms;

6) developing role clarity and task of results orientation on the part of

functionaries;

7) motivation of functionaries through attitude change and motivation

development programmes;

8) developing and implementing appropriate reward system for those

involved in the routine administration and implementation of tasks

(Haridwar Rai & SP Singh 1979).

2.10 HRD in Voluntary Organisations

One well-recognised reality in India has been that the efforts of the

government and government sponsored organisations and agencies along are

inadequate to achieve the enormous task of socio-economic transformation of

the country. Over the years the role of non-governmental organisations has

increased to a very great extent in a variety of fields such as rural development,

community development, health and rehabilitation, vocational training, consumer

organisation etc... Acknowledge of the need for voluntary organisation is

reflected in the seventh five-year plan document, which stated that “the seventh

plan can be implemented successfully with the involvement of the people. The

plan proposes to do this by increasing the involvement of voluntary agencies in

the implementation of plan Programme. (Seventh Five Year Plan of Government

of India, Report by Planning Commission).

Voluntary organisations enjoy a number of advantages, which make them

potentially effective change agents. Being usually small in size, they are flexible

and therefore, organisationally more adaptive. They tend to have a strong

ideological commitment to social justice and economic opportunity for all. They

have empathy for the underprivileged sections of the society. Since they are by

and large autonomous in functioning, independent and dynamic, they are able to

take on risks and undertake controversial activities which government and

corporate bodies would find difficult (D’Souza 1988). There are hundreds of live

examples to illustrate and high list the special nature of their activities and HRD

nature of their activities and HRD commitments. One such illustration is that of

the ‘Maliwada rural development project’ in Maharashtra. Members of the

organisation settled down in the village, lived and worked with the rural folk, and

in 10 to 12 months they helped the villages to remove many of the long standing

obstacles in social and economic development of the village, and gave them a

measure of self confidence. Another experiment is the ‘Thilonia experiment' in

Rajastan. A voluntary organisation known as “Social Work and Research Centre"

(SWRC), consisting of 40 specialists (geologists, social workers, teachers, etc..)

established their centre in the village and started work from the level in which the

104

rural poor were, recognising the skills and resources that were available in the

villages. Together with the villagers they worked on health schemes, water supply

projects, improvement of agriculture, village industries and other activities. Their

motto was to work with the villagers and not for them. The six years time, these

youngsters had changed Thilonia block of 80,000 people into a prosperous and

happy community. (Philip 1980 :1-7).

KC D’Souza (1988) in his unpublished dissertation 1 Organisations as

agents of social change' makes some generalisations regarding the kind of HRD

interventions, which may be useful in voluntary organisations.

1) Studies on voluntary organisations have indicated that they are more

likely to be effective when they are characterised by a flexible and

participatory management culture. While many voluntary organisations

begin with such cultures, as they grow in age and size, they tend to

become less flexible and allow less scope for participation. Diagnostic

HRD activities, climate surveys and culture-building or culture

changing interventions and team development, may therefore have

particular relevance to voluntary organisations;

2) An aspect widely neglected in voluntary organisations is the design

and development of appropriate HRD systems and procedures. While

105

many voluntary organisations are engaged in educational training and

consciousness generation activities with various client groups, they

often suffer the neglect of these aspects within themselves. Especially

in large voluntary organisations, there is need for systematic

mechanisms of performance and potential appraisal and training and

development;

3) Voluntary organisations are also found to be more effective when their

organisation climates are characterised by a high degree of

achievement orientation, warm interpersonal relations and mutually.

HRD practitioners, therefore need to address themselves to what kind

of systems and interventions are required to build and foster such

climates;

4) People in most voluntary organisations functions function under

conditions which are usually less attractive and materially rewarding

then those under which people in business and governmental

organisations function. Often, working conditions and facilities are

difficult and material rewards are poor. Motivation of members under

such condition is sustained largely by intrinsic, work-related rewards

and the satisfaction or being able to contribute to super - ordinate

106

goals. HRD activities such as target based performance appraisal

systems, activities would be useful in these circumstances;

5) Finally, perhaps the most important contribution, which HRD can make

to voluntary organisations, is to develop human resources that are

motivated and capable of working in them. It is clear that voluntary

organisations require people with skills and competencies, which may

be common to those of people in other organisations, but their

attitudes, values and motivations need to be distinctly different. HRD

may need to reorient many of its conventional tools to the specific

human resource needs of voluntary organisations.

2.11 Summary

Human Resource Development as a separate branch of study had

emerged from the early years of 19th century. It strengthened in to a very essential

branch of study during the second half of 19th century. There is umpteen numbers

of laudable works on subject. But almost all the books deal with the subject in the

industrial I organisational perspective. The works of Elton Mayo (The Human

Problems of an Industrial Civilisation, 1933); Chester I.Bernard (The Functions of

the Executive, 1938); PJ Roethlisberger and William J.Dickson (Management and

the Worker, 1943); Abraham Maslow (A Theory of Human Motivation, 1943); The

107

works of Frederick Winslow Taylor (Scientific Management, 1947); Henry Fayol

(General & Industrial Management, 1949); Frederick Herzberg (Motivation to Work,

1959); Douglas Me Gregor (The Human side of Enterprises, 1960); Rensis Likert

(New Patterns of Management, 1961); Chris Argyris (Interpersonal Competence

and Organisational Effectiveness, 1962); Chris Argyris (Personality and

organisations, 1957); Chris Argyris (Integrating the Individual and the

Organisation, 1964); Vector H Vroom (Work and Motivation, 1964); Peter F.

Drucker (Management: Tasks, Responsibilities, Practices, 1974); Rensis Likert

(An Improvement Cycle for Human Resource Development, 1978); have helped to

develop theoretical base and conceptual clarity.

The works of J Philip (Human Resource Development in India, 1980); NV

Lalitha (Status of Voluntary Effort in Social Welfare, 1982); L. Nadler (The

Handbook of Human Resource Development, 1984); MB Athreya (HRD in the

Service Sector, 1985); RK Seghal (HRD for the Development of Indian Society,

1985); Rao TV (Strategies of Developing Human Resources, 1985); MVD Bogaert

(HRD for Rural Development with Social Justice, 1985); Malathi Bolar (Human

Resource Development for Rural Development, 1985); KC D’Souza (Organisations

as Agents of Social Change, 1988); MB Athreya (Human Resource Development

in Government, 1989); KM Mathew (Human Resource Development in

Administration, 1989); Keith Davis (Human Behaviour at Work, 1990); Wendell

108

L.French (Human Resource Management, 1990); Wendell L. French (Organisation

Development, 1991); Mamoria CB (Personal Management, 1994); have helped to

reach the area of study with more clarity, by understanding the overall situation

in the area of Human Resource Development. But it is also found that no specific

wo rk has been done in the area of study.

2 . 1 2 Inferences from the Review of Literature

Based on the study the following inferences can be drawn.

2.1 2.1 Human Resource Development initiatives cannot be done in

isolation. It is influenced by many social, economical and human

characteristics.

2.1 2.2Human Resource Development is not the development of a

particular skill or quality or efficiency. It is a holistic approach

for the over all development of the person with special priority in

his specialised area of interest.

2.12.3 HRD should be based on the capacity of the individual to make

him capable for different activities and enable him to prove his

competency with others to make the particular activity effective

to the optimum level (the 3C principle)

109

2.12.5 In this context, Human Resource Development can be defined as a

process through which people are helped in a continuous and planned

way, based on assessed capabilities, to develop acquire or sharpen

capabilities, and increase competency with commitment to prove the

effectiveness in comparison with others, in order to perform various general

functions as an individual and social being and the specific functions

associated with the job at present and future.

111

References

Ah ra i l am H. Mas low (1943) : “Mot iva t ion and Persona l i ty" , New York: Harper and Row, 1954; Eupsychian Management, Homewood-111: Richard 1) . I rwin Inc .

Athreya MB (1985) : “HRD in the Serv ice Sec tor” , Indian Journal of Training and Development, XIV( 1) , January-March .

Aus t in Tobin (1995) : As c i ted in A Negandhi and B.Es tagen : “A Research Model to Determine the Appl icab i l i ty of Amer ican Knowhow in Di f fe r ing Cul tures and / o r Envi ronments” , Academy of Management Journal.

Bogaer t . MVI) (S . J ) e t . a l . (1985) : “HRD for Rura l Development wi th Soc ia l . Jus t ice” , Indian Journal of Training and Development, X V ' ( I ) , . January- lMareh .

Douglas Me ( i regor ( I960) : The Unman Side of Enterprises, New York: !Ylc(>rew Hi l l .

Edwin A.Locke (1982) : “The Ideas of Freder ick W.Tay lor : An Evalua t ion” , Academy of Management Review, January .

Freder ick Herzberg (1959) : Motivation to Work, NewYork: John Wiley and Sons .

H.M.F.Rush (1973) : Organisation Development: A Reconnaissance, New York: Nat iona l Indus t r ia l Conference Board , Inc .

Ind i ra Hi rway (1989) : “Panc lu iya th Raj a t Cross Roads” , Economic and Political Weekly, XXI V(2) , Ju ly .

Kenneth Bould ing (1956) : “ (Jenera l Sys tem Theory : The Ske le ton Sc ience” , Management Science, Apr i l .

La l lan Prasad , Banar jee A.M (1985) : Management of Human Resources, New Delh i : S te r l ing Publ ica t ions .

Mala thy Bolar (1985) : “Human Resource Development for Rura l Development” , Indian Journal of Training and Development, XV(1) , January-March .

Mamor ia .C.B (1994) : Personal Management, Bombay: l i imalava Publ i sh in" House , 12 ' " F .dn .

112

Nadler L(e i l ) (1984) : The Handbook Human Resource’ Development, New York: John Wiley .

Nadler .L , C a r l 1 ) . Wings (1986) : Managing Human Resource Development, I SA: . Josey Bass Publ i shers .

Nagendra P S ingh (2002) : “Grass - roo t Development” , Training and Management, 1 /2 , New Delh i .

Newman WH (1970) : “ Is Management Expor tab le?” , Colombia Journal of World Business, January-February .

N i r in a I Mukher jee (1986) : “The Al te rna t ive Dis t r ic t Government” in M.L.Daantwala , R .Gupta and K.C.D’Souzu , Asian Seminar on Rural Development, New Delh i : Oxford and IBM.

Peter F .Drueker (1954) : The Practice of Management, New York: Harper and Bro ther .

Pe te r F .Drueker (1974) : Management - Tasks, Responsibilities, Practices, USA: Wi l l iam Heineniann Ltd .

Phi l ip ,1 (1980) : “Human Resource Development in Ind ia : Exper iments and F .xpcr iences” , Indian Journal of Training and Development, \ (1 ) . Ianuary-March .

Sa t l iyasu iu la ram I (1997) : Rural Development, Mumbai : Himalaya Publ i sh ing House .

Sehgal RK (1985) : “HRD for the Development of Ind ian Soc ie ty ” , Indian Journal of Training and Development, XI V(4) , October -December .

Sharma AM (1995) : Personal and Human Resource Management, Bombay: Himalay a Publ i sh ing Mouse .

S inha . IBP (1979) : “ I he Nur turan t Task Lender” , ASCI Journal of Management <S(2), pp 109-119 .

S t rauss .G, Leonard R.Sayles (1985) : Personal — the Human Problems of Management, New Delh i : Pr in t ice Hal l o f Ind ia .

Sura t S ingh C.A.Rahim, (1989) : “Evolv ing Panchaya th Raj Leadersh ips" ,Journal of Rural Development, 8 (4) .

Taylor FYV (1947) : Scientific Management, NewYork: Harper and Bro ther .

Wayne F .C 'asc io (1989) : Managing Human Resources - Productivity - Quality of Work L i f e - Profits (2ml. Edn . ) , S ingapore : McCirew Hi l l .

Wendel L .Freneh , Cec i l I I .Be l l (1991) : Organisation Development, New Delh i : Pren t ice Hal l o f Ind ia , 4 l h F .dn .

Wilson DC, R.H.Rosenfe ld (1990) : Managing Organisations, Loudon: Mc( i rcw Hi l l .

Webs i tehU| i : /Av\vw.a i i i ay .on .com/cxcc /ohi t los / scarch- l i andlc- fonn/ r t f fHIn s r 00 /104- 7369816-4699104

Newspaper‘The Hindu’ Engl i sh da i ly HRD ta lk (Wednesday co lumn) .

'The Hindu ' Engl i sh da i ly book rev iew (Tuesday co lumn) .

113